Can I Make a Mortgage Payment With a Credit Card?

Paying a mortgage with a credit card is generally not possible directly, as mortgage lenders typically do not accept credit card payments due to the processing fees they incur. However, indirect methods and third-party services can facilitate using a credit card for your monthly mortgage obligation. These options present potential benefits, such as earning rewards, but also carry significant costs and financial risks that require careful consideration.

Methods for Making Mortgage Payments with a Credit Card

Direct payments from a credit card to a mortgage lender are rarely permitted, as lenders aim to avoid transaction fees. Individuals often explore indirect avenues.
One common method involves using third-party payment services, such as Plastiq. These platforms act as intermediaries, allowing you to charge your credit card for the mortgage amount. The service then sends an electronic payment or a check to your mortgage lender. Plastiq, for example, accepts Mastercard and Discover for mortgage payments, but generally not Visa or American Express for this purpose.

Another indirect approach involves cash advances, where you withdraw cash from your credit card’s available credit limit to make the mortgage payment. Balance transfers can also move funds from a credit card directly into your bank account, which you can then use for your mortgage. Some credit card issuers provide balance transfer checks that can be made out to a third party, potentially including your mortgage company. A less common method involves purchasing a money order with a credit card and then using it to pay the mortgage, though many merchants do not allow credit card purchases for money orders, and card issuers might treat these as cash advances.

Costs and Financial Implications

Using a credit card for mortgage payments involves various fees and financial considerations that can significantly increase the overall cost. Third-party payment services, like Plastiq, generally charge a transaction fee ranging from 2.5% to 2.9% of the payment amount. These fees can quickly erode any potential credit card rewards.

If the credit card balance is not paid in full, substantial interest charges accrue. Credit card interest rates, such as the median average of around 23.99% APR in August 2025, are significantly higher than typical mortgage interest rates. For cash advances, costs are often greater, with fees typically ranging from 3% to 5% of the advance amount. Cash advances also usually have a higher interest rate than regular purchases, and interest often begins accruing immediately without a grace period.

The financial implications extend beyond direct fees and interest. Using a large portion of your credit limit for a mortgage payment can increase your credit utilization ratio, which is the percentage of available credit being used. A high utilization ratio, generally above 30%, can negatively impact your credit score, making it harder to obtain future credit at favorable terms. The risk of accumulating high-interest debt is considerable if the balance isn’t paid off promptly. The potential for earning credit card rewards rarely outweighs the combined cost of transaction fees and interest if the balance is carried.

Limited Scenarios for Consideration

While generally not advisable for routine payments, extremely limited circumstances exist where using a credit card for a mortgage payment might be considered. One such scenario is a temporary, acute cash flow emergency. If faced with the immediate risk of a late mortgage payment, which can incur significant late fees and negatively impact your credit score, using a credit card might serve as a last resort to bridge a short-term gap. This approach is only viable if you are certain you can pay off the credit card balance in full before interest accrues, typically within the billing cycle, to avoid compounding high-interest debt.

Another rare instance where this strategy might be contemplated is to meet the spending requirements for a substantial credit card sign-up bonus. If a mortgage payment helps meet this threshold, and the value of the bonus significantly exceeds the transaction fees and any potential interest, it could be a strategic move. However, this requires careful calculation to ensure the bonus truly outweighs all associated costs. Even in these limited situations, the inherent risks of taking on high-interest credit card debt remain, and other alternatives, such as contacting your mortgage servicer for forbearance options, should typically be explored first.